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Ask Linda: We’re Getting Divorced. Now what?

Dear Linda, My spouse and I recently decided to get a divorce. What should we expect with regards to the divorce process and its financial implications? I am particularly concerned about how my retirement plan will be affected.  Separated Sam Dear Sam, We outlined the most common ways to obtain a divorce below, including the estimated price for each process. While this is not meant to replace your own due diligence, it should help you get started. Here are theRead More

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What is AD&D Insurance?

Dear Alicia, I have the ability to buy AD&D Life Insurance at work. The coverage would cost me less and I would get a higher death benefit than the Term policy I currently have. Should I buy it? I don’t understand the difference? – Insurance Irene  Dear Irene, In general, life insurance is purchased to give those who are dependent on your income a lump sum of cash upon your death so they can sustain their current lifestyle. An AD&DRead More

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We’re “Official.” Now What?

Dear Alicia, We’re getting married soon and are wondering if there are any particular financial steps we should take once we’re “official?” -Ned and Nancy the Newlyweds Congrats Ned and Nancy! Getting married is an exciting and hectic time. Here are the financial steps you should be taking once you are “official.” Goals Start by discussing your financial goals now and in the future. Do you want to buy a home, start planning for a baby, or create an emergencyRead More

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Ask Linda: Pre-tax versus Post-tax savings

Dear Linda, Should I save to my pre-tax 401k at work or my Roth IRA? I cannot fully fund both. Sincerely, Super Saver Dear Super Saver, To determine which account you should save to, calculate your tax rate today versus your projected rate in retirement. In general, Roth contributions are made with after-tax dollars and distributed tax-free. The 401k is the opposite – contributions are made with pre-tax dollars and distributions are taxed at ordinary income rates. If you areRead More

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Credit Lock v.s. Freeze. Don’t Get Fooled.

Dear Alicia,  I have been following your newsletter telling me that credit freezes will now be free. The other day I was watching television and saw an advertisement for Experian’s Credit Lock Services. Should I sign up for that instead of the freeze? It sounds exactly the same to me. Thanks, Credit Craig Dear Craig, Great question! A credit freeze and a credit lock are two separate services. They are very similar but do have distinct differences. Credit Lock: InstantRead More

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Can’t get yourself FIREd? You can still have a LIFE.

FIRE stands for financially independent, retire early. The movement continues to grow, with retirees in their 20’s through 40’s. It has caught on because it is unexpected – we don’t picture retirees being so young. Yet it is entirely possible and there is an ever-growing number of blogs and books that prove it. The typical profile of someone who has achieved FIRE: Graduated from college with very little or no student loan debt Earned $100,000+ per year with benefits SavedRead More

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